Today, Friday, March 27, 2020, the House of Representatives approved a $2 trillion coronavirus relief package bill. The U.S. Senate passed the same Bill earlier this week and President Trump has signed the Bill. The Bill includes significant benefits for individuals and businesses, including $100 billion to hospitals, $350 billion to small businesses, $500 billion to larger corporations such as airlines and domestic cruise lines, and $150 billion for state and local stimulus funds.
Highlights of the relief offered by the bill include:
- Payments to Individuals and Families: $1,200.00 payments to United States residents who have an adjusted gross income of $75,000.00 or less. Married couples with no children earning $150,000.00 or less will receive a total of $2,400.00. For every qualifying child age 16 or under, the payment would be an additional $500.00. Taxpayers filing as head of household will get the full payment if they earned $112,500 or less. For individuals and couples with incomes above these figures, the payment decreases until it reaches $0.00 for single people earning $99,000 or married couples who have no children and earn $198,000.00.
- Unemployment Benefits Increased: Unemployment benefits for jobless individuals will be increased by $600.00 per week for four months, on top of already existing state benefits. Thirteen (13) additional weeks of benefits eligibility have also been added for all job seekers. The extension also includes increased coverage for individuals not previously eligible for unemployment, including individuals who have been furloughed, are partially unemployed, are unable to work because of COVID-19, certain independent contractors, and self-employed individuals.
- Student Loan Payments Suspended: The Department of Education will suspend payments on federal student loans through September 30, 2020. This change does not apply to private student loan payments.
- Real ID Delayed: The implementation of real ID requirements for drivers licenses and domestic travel has been delayed to at least September 21, 2021.
- Loans, loan guarantees, and investments: The Treasury Department has the authority to provide up to $500 billion in loans, loan guarantees, and investments. Of those amounts, $25 billion is earmarked for passenger air carriers, $4 billion for cargo air carriers, and $17 billion for national security businesses. There are restrictions on businesses who access these funds, including maintaining 90% of employment levels and not issuing dividends until a year after the loan is repaid. Loan options for Small Businesses are also included.
- Hospitals: Hospitals will receive $117 billion, of which $100 billion will go to reimburse for expenses, costs, and lost revenues, and the remainder going to suppliers, nurses, doctors, etc…
- Federally Backed Mortgage Protections: The bill includes forbearances for properties with federally backed loans and mortgages for up to 60 days on the residential side, and 30 days with two 30 day extensions for multi-family loans. Landlords with federally backed mortgage loans also will not be allowed to evict tenants solely for non-payment of rent for 120-days and may not charge fees or penalties for failure to pay rent.
- Business Deductions Updated: The bill includes certain new and updated deductions for business taxes. We will provide additional details regarding these deductions in a later update.
Virtus Law, PLLC continues to monitor developments in this (and other COVID-19 areas) and will continue to post relevant updates to this website.